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Credit Unions Hold Largest Share of Mortgage Originations

mortgage-appCredit unions' market share of mortgage originations are experiencing a growth spurt in comparison to other financial institutions. TransUnion research released Tuesday found that credit unions' share of all mortgage originations has increased from 7 percent in Q1 2013 to 11 percent in Q1 2015.

According to the research, which was taken from a survey of 90 credit union executives, nearly six in 10 respondents noted that the number of mortgage originations provided to their members has grown over the past two years. The survey and data were released at TransUnion's annual credit union seminar in Las Vegas.

"Mortgage originations had declined substantially across the board in the last few years; however, the decline had been less dramatic for credit unions," said Nidhi Verma, director of research and consulting in TransUnion's financial services business unit. "In the last year alone, it appears significantly more credit union executives are seeing growth in this area. Credit unions are becoming bigger players in the mortgage loan market, something that may serve them well in the future as the housing market continues to recover."

Although credit union mortgage originations decreased 24 percent between 2012 and 2014, originations have actually increased 35 percent from Q1 2014 to Q1 2015. Meanwhile, the rest of the market experienced a 48 percent drop between 2012 and 2014 and only experienced 15 percent growth in the past year.

Additionally, TransUnion found that credit unions experienced 25 percent growth in non-prime mortgage originations in Q1 2015 while the rest of the industry grew at 4 percent.

"As the U.S. economy continues to recover, non-prime mortgage originations are growing for both credit unions and the rest of the industry," Verma said. "Historically, credit unions have seen lower delinquency rates than the rest of the industry, and their focus on membership expansion makes them well-positioned to take advantage of this growth."

TransUnion also reported that by the end of the housing 'burst,' 7 million consumers who had a mortgage were impacted in the burst. By end of 2014, 82 percent of those impacted were still impacted, which means 1.2 million impacted consumers had recovered, with another 2.5 milion roughly estimated to recover over the next 6 years.


Click here to view TransUnion's complete research. 

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.

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